15 hours agoGov’t seeks stake in MMG’S Khoemacau Copper Mine amid copper surge

The government has launched strategic talks with MMG, the Hong Kong-listed proprietor of Khoemacau Mining Company (MCM), signaling a revived ambition to secure a stake in one of the nation’s premier copper ventures. This development coincides with a dramatic surge in global copper prices, fueled by escalating demand from renewable energy industries, electric vehicle manufacturing, and burgeoning industrial activity across emerging markets. Minister of Minerals and Energy, Bogolo Kenewendo, addressed Parliament, revealing that the government is now engaging MMG through direct negotiations, as the statutory window to claim equity under the Mines and Minerals Act has elapsed.

“Under the law, the government’s right to acquire equity applies only at the time a mining licence is issued. Beyond that, any participation must be negotiated directly with the company,” Kenewendo clarified. The Khoemacau mine, granted a 20-year licence in 2015 under Section 39 of the Act, originally offered the government an option under Section 40 to acquire up to 24 percent equity.

At that time, the state declined to exercise this right, citing subdued global copper prices and the inherent investment risks in the sector. Kenewendo further explained that while Botswana’s diamond mining agreements typically fall under Section 51 of the Act, other minerals such as copper are governed by a distinct legal framework. “We have started other engagements that are not protected by the Mines and Minerals Act because the statutory window has passed,” she noted.

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Since 2015, the copper market has undergone a profound transformation. Prices have more than doubled, driven by soaring demand for renewable energy technologies, widespread adoption of electric vehicles, and sustained industrial expansion. This remarkable upswing has elevated copper’s status as a strategic and highly profitable resource, prompting the Botswana government to revisit its earlier stance and actively pursue discussions with MMG.

Khoemacau’s licence remains valid until 2035, securing the mine’s long-term significance in Botswana’s copper sector. The operation has shown steady growth, producing 10,993 tonnes of copper concentrate in the fourth quarter of 2025, an 8 percent increase from the previous year. MMG recently announced a 13 billion pula expansion project, projected to boost the mine’s annual production capacity to 130,000 tonnes of copper concentrate, further cementing its strategic role both domestically and in global copper markets.

Although the government missed its statutory window to claim equity, negotiated participation could still afford the state a meaningful stake in one of the country’s fastest-growing mining sectors. Traditionally known for its diamond-led mining industry, Botswana is increasingly diversifying into critical minerals.

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